The National Electric Power Regulatory Authority has approved a 93-paisa per unit reduction in electricity rates under fuel cost adjustments.
The decision is expected to provide short-term relief to consumers already burdened by high power bills nationwide.
According to Nepra’s official notification, the reduction relates to fuel cost adjustments for November power generation expenses.
This relief will be reflected in consumers’ electricity bills issued for January across most regions of the country.
The rate cut applies to all consumer categories, including Karachi, which follows a different power distribution framework.
However, lifeline consumers are excluded from the reduction and will not receive any benefit from this adjustment.
The decision follows a request by the Central Power Purchasing Agency seeking a Rs. 0.72 per unit refund.
CPPA estimated that passing on this adjustment could provide total relief of over Rs. 5.6 billion to consumers.
Nepra explained that fuel cost adjustments are conducted monthly to reflect changes in global fuel prices.
These variations in generation costs are passed on to consumers through subsequent billing cycles as per regulations.
Alongside the reduction, Nepra also announced the average base electricity tariff for January to December 2026.
The new base tariff has been set at Rs. 33.38 per unit, offering modest relief after repeated increases.
The government has shifted tariff determination from a fiscal-year basis to a calendar-year framework starting 2026.
The rebased tariff became effective from January 1, 2026, aligning billing with calendar-year calculations.
Nepra stated the new tariff is 62 paisa lower than the July–December 2025 electricity rate.
However, it remains Rs. 1.79 higher than the current base tariff of Rs. 31.59 per unit.
The regulator estimated the total financial requirement of power distribution companies at Rs. 3,379 billion for 2026.
This includes electricity procurement costs and operational expenses, ensuring full cost recovery for the power sector
Also read: NEPRA Unveils Revised Net Metering System for Electricity
